Download or read book Nash Equilibria in Power Markets and Product Design written by Aswin Kannan and published by LAP Lambert Academic Publishing. This book was released on 2012 with total page 132 pages. Available in PDF, EPUB and Kindle. Book excerpt: The book considers in detail two primary applications of game theory. The former refers to a networked power market setting with the competition characterized by the quantities. The latter deals with a classic Bertrand marketing problem in product design. The electricity market setting is modelled from multiple standpoints, all accounting for uncertainty. Different settings where the central operator is profit maximizing and revenue neutral are studied. One of the influential contributions of this work is the modelling and addressing of generators' shortfall risk. Variational tools are used for analysis and computation of equilibria. Rigorous mathematical analysis leads to strong existence statements on the games' solutions. Convergent decomposition based first order algorithms are proposed. The algorithms are seen to scale very well on practical large networked settings like the Belgian grid. They also prove to be good alternatives to second order schemes. The Bertrand competition is however seen to be less tractable analytically. Existence statements are made under some mild assumptions. The equivalent complementarity problems are solved and useful insights are studied.
Download or read book Nash Equilibrium Problems in Power Markets and Product Design Analysis and Algorithms written by Aswin Kannan and published by . This book was released on 2010 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The focus of this research is on the analysis and computation of equilibria in noncooperative Cournot and Bertrand games. The application of focus for Cournot competition is power markets while that for Bertrand competition is product design. We consider Cournot-based models for strategic behavior in power markets while Bertrandbased models are employed for analyzing the behavior of price-based competition in product design. This thesis is partitioned into three parts. Of these, the rst two parts focus on power market applications while the third part focuses on product design. Motivated by the risk of capacity shortfall faced by market participants with uncertain generation assets, the rst part considers a game where agents are assumed to be risk-averse optimizers, using a conditional value-at-risk (CVaR) measure. The resulting game-theoretic problem is a two-period risk-based stochastic Nash game with shared strategy sets. In general, this stochastic game has nonsmooth objectives and standard existence and uniqueness results cannot be leveraged for this class of games, given the lack of compactness of strategy sets and the absence of strong monotonicity in the gradient map of the objectives. However, when the risk-measure is independent of competitive interactions, a subset of equilibria to the risk-averse game are shown to be characterized by a solvable monotone single-valued variational inequality. If the risk-measures are generalized to allow for strategic interactions, then the characterization is through a multi-valued variational inequality. Both this object and its single-valued counterpart, arising from the smoothed game, are shown to admit solutions. The equilibrium conditions of the game grow linearly in size with the the sample-space, network size and the number of participating rms. Consequently, direct schemes are inadvisable for most practical problems and instead, we present a distributed regularized primaldual and dual projection scheme where both primal and dual iterates are computed separately. Rate of convergence estimates are provided and error bounds are developed for inexact extensions of the dual scheme. Unlike projection schemes for deterministic problems, here the projection step requires the solution of a possibly massive stochastic program. By utilizing cutting plane methods, we ensure that the complexity of the projection scheme scales slowly with the size of the sample-space. Insights regarding market design and operation are obtained after testing the model on a 53-node electricity network. The second part extends this model by considering the grid operator to be a pro t maximizer. However the effect of risk is neglected in this model. The resulting problem is a quasi variational inequality. An analysis of the equivalent complementarity problem (CP) allows us to claim that the game does admit an equilibrium. By observing that the CP is monotone, we are in a position to employ a class of iterative regularization techniques namely the iterative Tikhonov and the iterative proximal algorithms. The algorithms are seen to scale well with the size of the problem. The model is employed for examining strategic behavior on a twelve node network and several economic insights are drawn. The third part of this thesis deals with Bertrand competition in a product design regime. With due consideration to the attribute dimension in addition to price competition, more specifically for design and consumer service industries, a game theoretic model is formulated. The logit model, in lieu of some of its tractable properties, is deployed to capture consumer preferences and thereby the demand. Subsequently the variational formulations corresponding to the game are analyzed for existence of solutions. The lack of convexity of objectives, analytical intractability of the variational formulations corresponding to the game state some drawbacks of the logit model. Several projection and interior point schemes are deployed for solving these classes of problems. Numerical results for smaller instances of these games are illustrated by means of a painkiller example. Suggestions on alternate revenue maximization models are presented.
Download or read book Generalized Nash Equilibrium Problems Bilevel Programming and MPEC written by Didier Aussel and published by Springer. This book was released on 2018-04-03 with total page 134 pages. Available in PDF, EPUB and Kindle. Book excerpt: The book discusses three classes of problems: the generalized Nash equilibrium problems, the bilevel problems and the mathematical programming with equilibrium constraints (MPEC). These problems interact through their mathematical analysis as well as their applications. The primary aim of the book is to present the modern tool of variational analysis and optimization, which are used to analyze these three classes of problems. All contributing authors are respected academicians, scientists and researchers from around the globe. These contributions are based on the lectures delivered by experts at CIMPA School, held at the University of Delhi, India, from 25 November–6 December 2013, and peer-reviewed by international experts. The book contains five chapters. Chapter 1 deals with nonsmooth, nonconvex bilevel optimization problems whose feasible set is described by using the graph of the solution set mapping of a parametric optimization problem. Chapter 2 describes a constraint qualification to MPECs considered as an application of calmness concept of multifunctions and is used to derive M-stationarity conditions for MPEC. Chapter 3 discusses the first- and second-order optimality conditions derived for a special case of a bilevel optimization problem in which the constraint set of the lower level problem is described as a general compact convex set. Chapter 4 concentrates the results of the modelization and analysis of deregulated electricity markets with a focus on auctions and mechanism design. Chapter 5 focuses on optimization approaches called reflection methods for protein conformation determination within the framework of matrix completion. The last chapter (Chap. 6) deals with the single-valuedness of quasimonotone maps by using the concept of single-directionality with a special focus on the case of the normal operator of lower semi-continuous quasiconvex functions.
Download or read book Electricity Markets written by Jeremy Lin and published by John Wiley & Sons. This book was released on 2017-08-30 with total page 357 pages. Available in PDF, EPUB and Kindle. Book excerpt: A comprehensive resource that provides the basic concepts of electric power systems, microeconomics, and optimization techniques Electricity Markets: Theories and Applications offers students and practitioners a clear understanding of the fundamental concepts of the economic theories, particularly microeconomic theories, as well as information on some advanced optimization methods of electricity markets. The authors—noted experts in the field—cover the basic drivers for the transformation of the electricity industry in both the United States and around the world and discuss the fundamentals of power system operation, electricity market design and structures, and electricity market operations. The text also explores advanced topics of power system operations and electricity market design and structure including zonal versus nodal pricing, market performance and market power issues, transmission pricing, and the emerging problems electricity markets face in smart grid and micro-grid environments. The authors also examine system planning under the context of electricity market regime. They explain the new ways to solve problems with the tremendous amount of economic data related to power systems that is now available. This important resource: Introduces fundamental economic concepts necessary to understand the operations and functions of electricity markets Presents basic characteristics of power systems and physical laws governing operation Includes mathematical optimization methods related to electricity markets and their applications to practical market clearing issues Electricity Markets: Theories and Applications is an authoritative text that explores the basic concepts of the economic theories and key information on advanced optimization methods of electricity markets.
Download or read book Restructured Electric Power Systems written by Xiao-Ping Zhang and published by John Wiley & Sons. This book was released on 2010-10-15 with total page 292 pages. Available in PDF, EPUB and Kindle. Book excerpt: The latest practical applications of electricity market equilibrium models in analyzing electricity markets Electricity market deregulation is driving the power energy production from a monopolistic structure into a competitive market environment. The development of electricity markets has necessitated the need to analyze market behavior and power. Restructured Electric Power Systems reviews the latest developments in electricity market equilibrium models and discusses the application of such models in the practical analysis and assessment of electricity markets. Drawing upon the extensive involvement in the research and industrial development of the leading experts in the subject area, the book starts by explaining the current developments of electrical power systems towards smart grids and then relates the operation and control technologies to the aspects in electricity markets. It explores: The problems of electricity market behavior and market power Mathematical programs with equilibrium constraints (MPEC) and equilibrium problems with equilibrium constraints (EPEC) Tools and techniques for solving the electricity market equilibrium problems Various electricity market equilibrium models State-of-the-art techniques for computing the electricity market equilibrium problems The application of electricity market equilibrium models in assessing the economic benefits of transmission expansions for market environments, forward and spot markets, short-term power system security, and analysis of reactive power impact Also featured are computational resources to allow readers to develop algorithms on their own, as well as future research directions in modeling and computational techniques in electricity market analysis. Restructured Electric Power Systems is an invaluable reference for electrical engineers and power system economists from power utilities and for professors, postgraduate students, and undergraduate students in electrical power engineering, as well as those responsible for the design, engineering, research, and development of competitive electricity markets and electricity market policy.
Download or read book Economic Market Design and Planning for Electric Power Systems written by James A. Momoh and published by John Wiley & Sons. This book was released on 2009-11-19 with total page 311 pages. Available in PDF, EPUB and Kindle. Book excerpt: Discover cutting-edge developments in electric power systems Stemming from cutting-edge research and education activities in the field of electric power systems, this book brings together the knowledge of a panel of experts in economics, the social sciences, and electric power systems. In ten concise and comprehensible chapters, the book provides unprecedented coverage of the operation, control, planning, and design of electric power systems. It also discusses: A framework for interdisciplinary research and education Modeling electricity markets Alternative economic criteria and proactive planning for transmission investment in deregulated power systems Payment cost minimization with demand bids and partial capacity cost compensations for day-ahead electricity auctions Dynamic oligopolistic competition in an electric power network and impacts of infrastructure disruptions Reliability in monopolies and duopolies Building an efficient, reliable, and sustainable power system Risk-based power system planning integrating social and economic direct and indirect costs Models for transmission expansion planning based on reconfiguration capacitor switching Next-generation optimization for electric power systems Most chapters end with a bibliography, closing remarks, conclusions, or future work. Economic Market Design and Planning for Electric Power Systems is an indispensable reference for policy-makers, executives and engineers of electric utilities, university faculty members, and graduate students and researchers in control theory, electric power systems, economics, and the social sciences.
Download or read book Local Electricity Markets written by Tiago Pinto and published by Academic Press. This book was released on 2021-07-03 with total page 474 pages. Available in PDF, EPUB and Kindle. Book excerpt: Local Electricity Markets introduces the fundamental characteristics, needs, and constraints shaping the design and implementation of local electricity markets. It addresses current proposed local market models and lessons from their limited practical implementation. The work discusses relevant decision and informatics tools considered important in the implementation of local electricity markets. It also includes a review on management and trading platforms, including commercially available tools. Aspects of local electricity market infrastructure are identified and discussed, including physical and software infrastructure. It discusses the current regulatory frameworks available for local electricity market development internationally. The work concludes with a discussion of barriers and opportunities for local electricity markets in the future. - Delineates key components shaping the design and implementation of local electricity market structure - Provides a coherent view on the enabling infrastructures and technologies that underpin local market expansion - Explores the current regulatory environment for local electricity markets drawn from a global panel of contributors - Exposes future paths toward widespread implementation of local electricity markets using an empirical review of barriers and opportunities - Reviews relevant local electricity market case studies, pilots and demonstrators already deployed and under implementation
Download or read book The Economics of Electricity Markets written by Darryl R. Biggar and published by John Wiley & Sons. This book was released on 2014-07-10 with total page 493 pages. Available in PDF, EPUB and Kindle. Book excerpt: Bridges the knowledge gap between engineering and economics in a complex and evolving deregulated electricity industry, enabling readers to understand, operate, plan and design a modern power system With an accessible and progressive style written in straight-forward language, this book covers everything an engineer or economist needs to know to understand, operate within, plan and design an effective liberalized electricity industry, thus serving as both a useful teaching text and a valuable reference. The book focuses on principles and theory which are independent of any one market design. It outlines where the theory is not implemented in practice, perhaps due to other over-riding concerns. The book covers the basic modelling of electricity markets, including the impact of uncertainty (an integral part of generation investment decisions and transmission cost-benefit analysis). It draws out the parallels to the Nordpool market (an important point of reference for Europe). Written from the perspective of the policy-maker, the first part provides the introductory background knowledge required. This includes an understanding of basic economics concepts such as supply and demand, monopoly, market power and marginal cost. The second part of the book asks how a set of generation, load, and transmission resources should be efficiently operated, and the third part focuses on the generation investment decision. Part 4 addresses the question of the management of risk and Part 5 discusses the question of market power. Any power system must be operated at all times in a manner which can accommodate the next potential contingency. This demands responses by generators and loads on a very short timeframe. Part 6 of the book addresses the question of dispatch in the very short run, introducing the distinction between preventive and corrective actions and why preventive actions are sometimes required. The seventh part deals with pricing issues that arise under a regionally-priced market, such as the Australian NEM. This section introduces the notion of regions and interconnectors and how to formulate constraints for the correct pricing outcomes (the issue of "constraint orientation"). Part 8 addresses the fundamental and difficult issue of efficient transmission investment, and finally Part 9 covers issues that arise in the retail market. Bridges the gap between engineering and economics in electricity, covering both the economics and engineering knowledge needed to accurately understand, plan and develop the electricity market Comprehensive coverage of all the key topics in the economics of electricity markets Covers the latest research and policy issues as well as description of the fundamental concepts and principles that can be applied across all markets globally Numerous worked examples and end-of-chapter problems Companion website holding solutions to problems set out in the book, also the relevant simulation (GAMS) codes
Download or read book Micro and Local Power Markets written by Andreas Sumper and published by John Wiley & Sons. This book was released on 2019-07-22 with total page 282 pages. Available in PDF, EPUB and Kindle. Book excerpt: Introduces readers to micro and local power markets and their use for local initiatives, grid integration, and future applications This book provides the basis for understanding micro power markets, emphasizing its application for local initiatives, the grid integration of renewable-based generation, and facilitating the decarbonization of the future electrical networks. It gives readers a comprehensive overview of the market operation, and highlights the basis of the design of local and micro markets. Micro and Local Power Markets starts by covering the economics and basic principle of power markets, including the fundamentals of the power trading (for both wholesale and local markets). Following a definition of both micro and local (technical and economic aspects) power markets, the book then looks at the organization of such markets. It describes the design of those power markets, isolated from the wholesale markets, and examines the methodologies of the interaction between these power markets and wholesale markets. The book also presents cognitive business models for micro and local power markets, as well as the regulatory issues concerning them. Introduces the basic principle of power markets Defines micro and local power markets Outlines the design of micro and local power markets, including the principles, as well as the trading schemes, flexibility, and services Discusses methodologies of the interaction between micro and local power markets and wholesale markets Presents business models for micro and local power markets Summarizes regulatory issues around micro and local power markets Micro and Local Power Markets is an ideal book for upper undergraduate students in engineering, as well as for early researchers in the energy sector. It is also recommended for any scientist and engineer being introduced to the field of power systems and their organization.
Download or read book Complementarity Modeling in Energy Markets written by Steven A. Gabriel and published by Springer Science & Business Media. This book was released on 2012-07-20 with total page 637 pages. Available in PDF, EPUB and Kindle. Book excerpt: This addition to the ISOR series introduces complementarity models in a straightforward and approachable manner and uses them to carry out an in-depth analysis of energy markets, including formulation issues and solution techniques. In a nutshell, complementarity models generalize: a. optimization problems via their Karush-Kuhn-Tucker conditions b. on-cooperative games in which each player may be solving a separate but related optimization problem with potentially overall system constraints (e.g., market-clearing conditions) c. conomic and engineering problems that aren’t specifically derived from optimization problems (e.g., spatial price equilibria) d. roblems in which both primal and dual variables (prices) appear in the original formulation (e.g., The National Energy Modeling System (NEMS) or its precursor, PIES). As such, complementarity models are a very general and flexible modeling format. A natural question is why concentrate on energy markets for this complementarity approach? s it turns out, energy or other markets that have game theoretic aspects are best modeled by complementarity problems. The reason is that the traditional perfect competition approach no longer applies due to deregulation and restructuring of these markets and thus the corresponding optimization problems may no longer hold. Also, in some instances it is important in the original model formulation to involve both primal variables (e.g., production) as well as dual variables (e.g., market prices) for public and private sector energy planning. Traditional optimization problems can not directly handle this mixing of primal and dual variables but complementarity models can and this makes them all that more effective for decision-makers.
Download or read book Electricity Markets and Power System Economics written by Deqiang Gan and published by CRC Press. This book was released on 2013-11-12 with total page 212 pages. Available in PDF, EPUB and Kindle. Book excerpt: After the first power plant in history was commissioned for commercial operation by Thomas Edison on Pearl Street in New York in 1882, electricity was sold as a consumer product at market prices. After a period of rapid development, electricity had become such a fundamental product that regulation was believed to be necessary. Since then, the power
Download or read book Economics of Electricity written by Anna Cretì and published by Cambridge University Press. This book was released on 2019-05-30 with total page 369 pages. Available in PDF, EPUB and Kindle. Book excerpt: Explains the economics of electricity at each step of the supply chain: production, transportation and distribution, and retail.
Download or read book Electricity Markets and Power System Economics written by Deqiang Gan and published by CRC Press. This book was released on 2013-11-12 with total page 222 pages. Available in PDF, EPUB and Kindle. Book excerpt: After the first power plant in history was commissioned for commercial operation by Thomas Edison on Pearl Street in New York in 1882, electricity was sold as a consumer product at market prices. After a period of rapid development, electricity had become such a fundamental product that regulation was believed to be necessary. Since then, the power industry had been considered a natural monopoly and undergone periods of tight regulation. Deregulation started in the early 1980s and as a result, most developed countries run their power industries using a market approach. With the theories and rules of electricity markets developing rapidly, it is often difficult for beginners to start learning and difficult for those in the field to keep up. Bringing together information previously scattered among various journals and scholarly articles, Electricity Markets and Power System Economics provides a comprehensive overview of the current state of development in the electricity market. It introduces the fundamental principles of power system operation so that even those with a basic understanding can benefit from the book. The book includes a series of consistent mathematical models of market operation of power systems, and original cases with solutions. Systematically describing the basic building blocks of electricity market theory, the book provides a guide to underlying theory and mainstream market rules.
Download or read book Nash Equilibria in Electricity Markets written by Edward J. Anderson and published by . This book was released on 2001 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book New Perspectives on Industrial Organization written by Victor J. Tremblay and published by Springer Science & Business Media. This book was released on 2012-07-20 with total page 820 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book covers the main topics that students need to learn in a course on Industrial Organization. It reviews the classic models and important empirical evidence related to the field. However, it will differ from prior textbooks in two ways. First, this book incorporates contributions from behavioral economics and neuroeconomics, providing the reader with a richer understanding of consumer preferences and the motivation for many of the business practices we see today. The book discusses how firms exploit consumers who are prone to making mistakes and who suffer from cognitive dissonance, attention lapses, and bounded rationality, for example and will help explain why firms invest in persuasive advertising, offer 30-day free trials, offer money-back guarantees, and engage in other observed phenomena that cannot be explained by the traditional approaches to industrial organization. A second difference is that this book achieves a balance between textbooks that emphasize formal modeling and those that emphasize the history of the field, empirical evidence, case studies, and policy analysis. This text puts more emphasis on the micro-foundations (i.e., consumer and producer theory), classic game theoretic models, and recent contributions from behavioral economics that are pertinent to industrial organization. Each topic will begin with a discussion of relevant theory and models and will also include a discussion of concrete examples, empirical evidence, and evidence from case studies. This will provide students with a deeper understanding of firm and consumer behavior, of the factors that influence market structure and economic performance, and of policy issues involving imperfectly competitive markets. The book is intended to be a textbook for graduate students, MBAs and upper-level undergraduates and will use examples, graphical analysis, algebra, and simple calculus to explain important ideas and theories in industrial organization.
Download or read book Competition and Equilibria in Electricity Markets Based on Two settlement System written by David Watts and published by . This book was released on 2007 with total page 278 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Handbook of Risk Management in Energy Production and Trading written by Raimund M. Kovacevic and published by Springer Science & Business Media. This book was released on 2013-11-27 with total page 506 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book presents an overview of the risks involved in modern electricity production, delivery and trading, including technical risk in production, transportation and delivery, operational risk for the system operators, market risks for traders, and political and other long term risks in strategic management. Using decision making under uncertainty as a methodological background, the book is divided into four parts, with Part I focusing on energy markets, particularly electricity markets. Topics include a nontechnical overview of energy markets and their main properties, basic price models for energy commodity prices, and modeling approaches for electricity price processes. Part II looks at optimal decisions in managing energy systems, including hydropower dispatch models, cutting plane algorithms and approximative dynamic programming; hydro-thermal production; renewable; stochastic investments and operational optimization models for natural gas transport; decision making in operating electricity networks; and investment in extending energy production systems. Part III explores pricing, including electricity swing options and the pricing of derivatives with volume control. Part IV looks at long-term and political risks, including energy systems under aspects of climate change, and catastrophic operational risks, particularly risks from terrorist attacks.
